According to Nimbus Post chief executive officer Yash Jain, implementation of the PM-Gati-Shakti plan will prompt several China-based companies to relocate to India in a few years, helped by lower logistics and supply chain costs.
Logistics costs, which account for around 14% of India’s gross domestic product, will drop to 8-9% after the integration of 16 ministries under the PM Gati Shakti plan, Jain said.
Prime Minister Gati Shakti will make logistics and supply chain machines more efficient by reducing the turnaround time of transport companies, he said.
“These costs affect everything we do,” Jain said. “Be it domestic manufacturing, importing goods, or simple trade, a cost reduction will transform the entire economy while bringing a lot of foreign direct investment into the country.”
According to Union Government official website, PM Gati Shakti is a national master plan for multimodal connectivity. Essentially a digital platform to bring together 16 ministries, including railways, for integrated planning and coordinated implementation of infrastructure connectivity projects.
Multimodal connectivity will provide seamless connectivity for the movement of people, goods and services from one mode of transport to another. It will also facilitate last-mile infrastructure connectivity and reduce travel time for people.
Nimbus Post, which helps offline and e-commerce retailers jumpstart their business and go online to avoid the technological and operational challenges of physical operations, has seen revenue growth of more than 100% since the days before the pandemic .
The company expects growth to be significant as the distinction between essential and non-essential products no longer exists.
However, state, intercity and delivery challenges will remain, he said.
The biggest challenge for the industry is the lack of trust due to high order cancellations and high cash on delivery penetration. Due to the geography of the country, small businesses find it challenging to manage high order cancellations.
“Using artificial intelligence and predictive analytics, we map the PIN codes and areas of high cancellations to help e-commerce merchants avoid such areas or find better ways to address them,” Jain said.